Russia’s sanctions-hit economy will shrink by less than previously forecast this year and return to growth in 2024 on the back of domestic demand and investment, the economic development minister said Wednesday.
Gross domestic product will contract by 2.9 percent, up from a previous projection of negative four percent, said Economic Development Minister Maxim Reshetnikov told the upper chamber of parliament.
The International Monetary Fund has forecast a six percent contraction in Russia this year.
The country’s economy has been thumped by a series of unprecedented Western sanctions over the conflict in Ukraine.
Reshetnikov said GDP will shrink by 0.8 percent next year due to a drop in exports.
But it will grow by 2.6 percent in 2024 thanks to “an increase in domestic demand, the level of consumption and investments,” he said.
The “redirection” of Russian oil and gas exports toward “neutral countries” will help to support economic activity by 2024-2025, the minister added.
Reshetnikov spoke hours after President Vladimir Putin ordered a partial military mobilization in Russia, an escalation of Moscow’s offensive in Ukraine that could have an impact on the economy.
Russia says economy to contract by less than 3 pct in 2022: Deputy PM Andrei BelousovRussia’s economy will contract by less than 3 percent this year, First Deputy Prime Minister Andrei Belousov said on Monday, as a strong jobs market ... World News
Russian economy doing well despite sanctions: IMFDespite damaging Western sanctions imposed on Moscow in the wake of the invasion of Ukraine, Russia's economy appears to be weathering the storm ... News
Russia: New EU sanctions will hurt global economy, hopes for food export progressRussia's foreign ministry on Thursday said the latest round of European Union sanctions were illegitimate and would have “devastating consequences” ... World News
Russian parliament passes first vote on war economy measuresRussian lawmakers on Tuesday gave the first stamp of approval to two bills that would authorize the government to oblige businesses to supply the ... World News